TIDMAR.

RNS Number : 7298P

Archipelago Resources PLC

30 October 2012

30 October 2012

AIM: AR.

Archipelago Resources plc

("Archipelago" or "the Company")

Archipelago announces record quarterly production result

Archipelago is pleased to release its production results for the Toka Tindung Mine in North Sulawesi, Indonesia for the quarter ended 30 September 2012 ("Q3 2012").

HIGHLIGHTS

-- Record quarterly production of 36,184 Au Eq oz (for year to date production of 96,570 Au Eq oz).

   --      Gold head grade of 2.79 g/t for Q3 2012.

-- Full year production guidance maintained of 135,000 to 145,000 Au Eq oz at a cash cost of between $580 and $640 per Au oz.

COMMENT

Commenting on results for the quarter, Marcus Engelbrecht, Managing Director and CEO, said:

"Archipelago recorded its strongest production quarter since Toka Tindung was commissioned in November 2011 and remains on track to deliver on our full year guidance of 135,000 to 145,000 Au Eq oz. Production will remain robust for the rest of the year as mining continues in the high grade deposits of Pajajaran and Kopra."

DETAILS

For Q3 2012, gold production was a record for a quarter at 36,184 Au Eq oz. To 30 September 2012, year to date production was 96,570 Au Eq oz. For Q3 2012, Archipelago provides the following production results:

 
 
Ore Mined (T)                   1,966,612    702,898 
-----------------------------  ----------  --------- 
Waste Mined (T)                11,469,111  3,896,321 
-----------------------------  ----------  --------- 
Total Mined (T)                13,435,723  4,599,219 
-----------------------------  ----------  --------- 
Ore Processed                   1,291,243    422,077 
-----------------------------  ----------  --------- 
Strip Ratio                          5.83       5.54 
-----------------------------  ----------  --------- 
Head Grade for Au (g/t)              2.45       2.79 
-----------------------------  ----------  --------- 
Head Grade for Ag (g/t)              8.92      13.19 
-----------------------------  ----------  --------- 
Process Recovery Rate (%)           90.1%      89.2% 
-----------------------------  ----------  --------- 
Gold Ounces Produced (Eq oz)       96,570     36,184 
-----------------------------  ----------  ---------

The average head grade for gold equivalent ounces was 3.02 g/t for Q3 2012 and 2.60 g/t for the year to date.

The strip ratio was lower for Q3 2012 (5.54:1) against 5.99:1 for the half ended 30 June 2012 ("H1 2012), with the Company now mining near surface ore at the southern deposits. Archipelago's record production quarter was achieved notwithstanding a five day scheduled maintenance shutdown in September, which resulted in slightly lower tonnes processed during Q3 2012. Relative to other quarters, the gold recovery rate was also slightly lower at 89.2%. In large part, this was due to the higher silver content in the ore processed.

In line with mine planning, strong Q3 2012 production was primarily due to the Company accessing higher grade ore from the Pajajaran pit as the quarter progressed (with relatively lower grade ore being mined at the beginning of the quarter).

Archipelago has continued to sustain robust production levels during the current calendar month, with the Company now mining higher grade ore at Kopra, in addition to activities at Pajajaran and the main Toka pit. Archipelago is maintaining full year guidance of 135,000 to 145,000 Au Eq oz.

Relative to H1 2012, cash costs are trending down as grades increase, stripping ratios decrease and output continues to ramp up. Archipelago is maintaining cash cost guidance of $580 to $640 per Au oz.

FURTHER INFORMATION

 
Archipelago Resources 
 plc 
 Vice President 
 - Corporate Affairs             +65 6535                      +44 20 7523 
 Matthew Salthouse                   3419                             8000 
--------------------------  -------------  ------------------  ----------- 
                                            Canaccord Genuity 
                                                      Limited 
                                                 Joint Broker 
                                                  Rob Collins 
                                                 Andrew Chubb 
--------------------------  -------------  ------------------  ----------- 
Grant Thornton Corporate 
 Finance 
 NOMAD 
 Gerry Beaney                 +44 20 7383 
 David Hignell                       5100 
--------------------------  -------------  ------------------  ----------- 
                                              Liberum Capital 
                                                      Limited 
  Buchanan                                       Joint Broker 
  Corporate Communication                   Michael Rawlinson 
  Bobby Morse                 +44 20 7466         Christopher  +44 20 3100 
  Gordon Poole                       5000            Kololian         2000 
--------------------------  -------------  ------------------  -----------

ABOUT ARCHIPELAGO

Archipelago is a producing mining company listed on the AIM market of the London Stock Exchange. Archipelago's vision is to grow into a respected and regionally dominant mid-cap gold producer, managing a portfolio of gold mines and delivering significant value and returns for our shareholders. Archipelago's principal activities are gold mining and exploration in Indonesia (as the 95% owner of the producing Toka Tindung Gold Mine in North Sulawesi, Indonesia). In 2012, Archipelago expects to produce between 135,000 and 145,000 gold equivalent ounces at a cash cost of between US$580 and US$640 per ounce.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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